Morale improves only slightly in October

NEW YORK — Americans' confidence in the economy stayed stuck in gloomy territory in October, with Wall Street's gains in recent months not boosting spirits much.

THE ASSOCIATED PRESS

NEW YORK — Americans' confidence in the economy stayed stuck in gloomy territory in October, with Wall Street's gains in recent months not boosting spirits much.

Coaxing shoppers out of their shells will be the major challenge for retailers heading into the holiday season. That could mean they'll be continuing to push big discounts.

The confidence report, released Tuesday by the Conference Board, comes in the face of a rebounding stock market. But many shoppers, grappling with weak job prospects and a renewed slide in home prices, see their personal financial health tied more to Main Street, not Wall Street.

"The things that matter most to consumers are either not improving or worsening," said Mark Vitner, an economist at Wells Fargo. "We are definitely going to see a heavily promotional holiday shopping season."

The Conference Board, a private research group, said its Consumer Confidence Index rose to 50.2 from a revised 48.6 in September. Economists surveyed by Thomson Reuters expected 49.2.

September's reading was the index's lowest point since February.

An index of 90 indicates a healthy economy. That hasn't been approached since the recession began in December 2007. Economists watch confidence closely because consumer spending accounts for about 70 percent of U.S. economic activity and is critical to a strong rebound.

The index, which measures how Americans feel about business conditions, the job market and the next six months, has recovered only fitfully since hitting an all-time low of 25.3 in February 2009.

The Dow Jones industrial average fell about 10 points to 11153.91 after rising Monday to its highest close since late April. For the year, the Dow is up 7.1 percent.

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